The Common ERP Mistake Costing You Profit

Episode Summary

This week on the Free to Grow CFO Podcast, host Jon Blair, founder of Free to Grow CFO, welcomes Jared Ward, founder and CEO of Luminous. They dive into the complexities of inventory management, the importance of tracking COGS, and the pitfalls of traditional ERP systems. During their chat Jared shares his journey from launching e-commerce side hustles to leading a $20 million business, and now creating Luminous, a game-changing inventory management system (IMS) designed for modern DTC brands. Jared also shares his insights on the new wave of e-commerce brands, the limitations of traditional ERP systems, and how Luminous fills the gap for mid-market companies. This conversation covers practical advice for tracking landed COGS, integrating personal and professional life as a founder, and why effective inventory management is key to financial health and scalability.

Key Topics:

- Jared Ward's background and journey to founding Luminous

- Challenges of inventory management in scaling DTC brands

- Importance of precise inventory tracking and landed COGS

-Comparing traditional ERP systems and modern IMS solutions

-Integrating personal and professional life as an entrepreneur

Meet Jared Ward

Jared Ward started his first e-commerce company when he was 23. Back then, it was selling baby gates and barn door hardware across a couple Etsy shops and on Amazon. While continuing to grow his e-commerce business on the side he got a job as a sourcing manager at a distribution company to learn more about high level supply chain with major retailers (HSN, QVC, Walmart, etc.). Years later, after helping countless DTC brand optimize their supply chain through running Made-in-China's sourcing division, Jared noticed major issues in the way e-commerce companies used software in operations. He built and sold an RFQ management system that helped DTC brands optimize their purchasing. Then, he moved on and became a CEO of a DTC brand at 28. His experience running Qualtry showed even more the gap in the market of software solutions in e-commerce that address the entire supply chain.

Episode Links

Jon Blair - https://www.linkedin.com/in/jonathon-albert-blair/

Jared Ward - https://www.linkedin.com/in/jared-luminous/

Free to Grow CFO - https://freetogrowcfo.com/

Luminous - https://www.joinluminous.com/

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00:00 Welcome and Introduction to Jared Ward

02:29 Jared's Background and Experience

03:34 Challenges in Inventory Management

08:46 The Role of Inventory Management Systems (IMS)

17:01 Modern E-commerce and Outsourced Operations

21:35 Traditional ERP Systems vs. Modern Needs

26:52 The Tech Gap in ERP Systems

27:08 Challenges with Big ERP Systems

30:01 Evaluating ERP Systems: A Personal Experience

36:43 The Importance of Landed COGS

47:33 Integrating Work and Personal Life

52:20 Final Thoughts